What is considered a 'Default' in the context of the lease agreement for a Desi District franchise?

According to Desi District's 2024 Franchise Disclosure Document, a 'Default' in the context of the lease agreement refers to a written notice of default given to the tenant (franchisee) by the landlord. The landlord is required to provide Desi District with copies of any such default notice.

Desi District has the option, but not the obligation, to cure any default under the lease if the franchisee fails to do so. This option must be exercised within 10 days after the expiration of the period in which the franchisee may cure the default. If the landlord terminates the lease due to the franchisee's default, Desi District has the option to enter into a new lease with the landlord under the same terms and conditions as the terminated lease. To exercise this option, Desi District must notify the landlord within 15 days after receiving notice of the lease termination.

Furthermore, if the Franchise Agreement between Desi District and the franchisee is terminated during the term of the lease, the franchisee is required to assign the lease to Desi District upon written request. The landlord consents to this assignment. This provision ensures that Desi District can maintain control over the leased premises even if the franchisee's agreement is terminated. This setup is typical in franchising, allowing the franchisor to protect their brand and location.